Assignment#01

NAME: MONIKA REHMAN

ROLL NO: 10
DEPARTMENT: COMMERCE
COURSE CODE: COM-556
M.COM 2nd SEMESTER
SUBMITTED TO:MAM NAWISH BASHIR
SUBJECT: MANAGERIAL ACCOUNTING
Which factors of internal decision making (management) makes its weak? Define
these factors.

Weaknesses are the areas which have scope for improvement. Find out if your business is
new products or skills. Also, try to find if you have a lower productivity or higher cost
base than your competitors. You will have to face the unpleasant truths about your firm
and be realistic. Ask the following questions:

 What are you bad at?

 Is there anything you could be better at?
 What should you avoid?
 What leads to problems or complaints?

The greatest thing about internal factors is that you have control over most of them.
Changing internal factors often involves some indirect costs. Some of the factors are a
result of the way you run your business. Example of this includes reputation, credit
worthiness, and image. Other factors depend on your business decisions. Example of this
includes management structure and staffing.

FACTORS THAT AFFECT DECISION MAKING

The internal factor refer to any thing within the company and under the control of
company no matter whether they are tangible or intangible. Some times these
factors tend to be feasible for company and some times these factors Negative
impact on company management. These factors consider as weakness and
strengths they depend on environment of company.There are many factors that
can make decision making difficult or affect the quality of decisions.Following are
the Factors that affect Internal decision making.

 Finance
 Human Resources
 Technology
 Other factors
 Corporate Cultures
 Leadership
 Employees
 Mission Statement
 Organisational and Operational
 Strategic risk
 Inter personal relationship with employees
 Labour management
 Task execution Or operation
 Planes and polices
 Sourcing decision
 Pricing decision
FINANCE

There may not be finance available to the business to make the decisions they
would like to. Expand business or enter into new market and build new plant. A
business may wish to invest in new machinery to increase production but they do
not have enough capital to allow them to do this.Insuficent finance prevent the
Managers to take any decisions regarding above the following.

HUMAN RESOURCES

Human resource is key factor of company. Every organization need good skilled
staff for the better performance of company.it is possible when they have skilled
and knowledgeable employees The quality of decisions made by managers can
be affected by

Their skills and Expertise

The amount and quality of information they have available
The staff involved in implementing the decision need to be willing to cooperate
and work with the decision for it to be successful. Senior managers may not
agree with the decisions. Existing company policy may restrict the decisions a
manger is allowed to make these companies are centralized in nature only top
management make decisions regarding the company matters

TECHNOLOGY
Lack of the correct equipment or technology may restrict the decision-making
process. Many technologies exist to share and analyze information in the supply
chain manager must decide which technologies are use and how to integrate
these technologies into their companies like internet,ERP,RFID.
Examples of technologies that businesses rely on can include:

 Specialist software
 Top of the range hardware
 Access and control of social media
 Apps
A business can use new technology to ensure efficiency and also to boost its profile.
Savings can be made by having staff using video conferencing technology instead of
travelling to meetings. By using smartphone and tablet technology, staff can also work
while away from the office.

A business can use social media platforms such as Twitter and Facebook to establish a
close link to its customers and to spread the word about its products.

Businesses need up-to-date technology to keep up with customers’ ever-changing

requirements. For example, those that do not provide an option for customers to buy
products online are likely to lose out on valuable sales.
If a business doesn’t upgrade its hardware and software, then any advantage they have
over rivals who do invest in technology will eventually be eroded.

OTHER FACTORS

 The decision-making process may also be affected by

 amount of time available to make the decision
 external pressures such as exchange rates,interest rates and economic
stability and labour union etc.
 Foreign policies includes export and import of goods

CORPORATE CULTURES

Corporate culture is normally defined as The way things are done around here. This
means the way in which the attitudes, beliefs, values and norms of the firm are visible and
evident and shared by all employees in the organisation.this will increase the employee
empowerment to take decision regarding any problems they face in their field of work.
Because they are close to that problem.

Examples of corporate culture can be found in:

 staff uniforms
 the corporate logo and colors scheme
 the mission statement
 company policies
 incentives and rewards for staff
 training and development of staff
 teambuilding for employees
 Unity and share their problems

LEADERSHIP
Leadership refers to the people in your organization that make all the major decisions
regarding financing, budget, sales, marketing, and human resources. Companies with
strong leadership have a clear vision for the future, a plan of how to achieve their goals
and a quantifiable way of measuring success. They have also developed the kind of
management structure that enables employees to feel empowered, while also meeting
production and sales goals. Weak leadership is like a ship without a rudder that has no
direction and is in danger of sinking. Leaders that lack a strong vision and that are
unable to properly manage their teams will find it difficult to achieve their goals.

EMPLOYEES
Strong businesses feature motivated workers that understand management’s
expectations and are given the tools, training, support, and encouragement to not only
meet those expectations but to exceed them. It’s not enough for leaders to hire qualified
employees, because every good company does the same thing. For a company to
consistently produce high results, managers must ensure that they are in constant
communication with employees and that any problems or dissatisfaction within the
 rank-and-file is handled in a timely manner. When employees feel valued and rewarded,
they will go above and beyond to maintain a high organizational standard.

MISSION STATEMENT
Do your employees understand why your company exists? In other words, has
management communicated the mission statement of your business, which is the
underlying reason that you make specific products and offer specific services?
Defining the ‘why’ of a company rather than the ‘what’ of a company is the key to
providing your employees with the motivation and buy-in that affects how hard they
work, and how much they believe in what they do. For example, the shoe company
Zappos developed a mission statement that it was always about pleasing the
customer, no matter what it took. That mission enabled Zappos’ management to give
employees the discretion to give discounts and freebies to customers without
supervisor approval. As a result, Zappos soon became known as one of the best
customer service companies in the world.
ORGANISATIONAL AND OPERATIONAL
These are a part of the operational and administrative procedures. This
includes disorganized or inaccurate record keeping.  Interruptions to your
supply chain and outdated or faulty IT systems are also factors you should
evaluate. If you do not overcome these, your customers might see you as
unreliable. You can also lose all your data.
STRATEGIC RISK
These affect your firm’s ability to reach the goals in the business plan. They could be
due to the impacts of changes in technological evolutions or customer demand. These
factors could pose as threats as they can alter how customers perceive your product.
Based on these, customers might think a product is overpriced, dull and outdated.
LABOUR MANAGEMENT
For the betterment of your work and continual improvement in your company
productivity labour management is very important. Managing labour is big task for
Managers to handle them in right time with suitable equipments.and provide
reasonable packages this will lead good relationship with labour.
TASK EXECUTIONS OR OPERATIONS
Timely execution of demand is very necessary to fulfillment of requirement of
customer. The production department ought to be efficient in ensuring the orders of
their customers, that is to say acquiring inputs, raw materials, working process, etc.
SOURCING DECISION
Following are the components of sourcing decision
 In-house or outsourcing:It is best to outsourcing if the
growth in total SC surplus significant with little additional
risk.
 Supplier selection: Deciding the number of suppliers and
criteria of suppliers .
  Procurement: Deciding the structure of procurement of direct
and indirect materials
PRICING DECISION

Determine how much a firm will charge for goods and services that it makes available
in supply chain.manager make decision about the price of product and services.
Pricing Decision include following components:

 Pricing of Economies of Scale: Small quantity of production costs quantity of units

produced in contrast than long run production.
 Fixed price vs menu pricing: if marginal supply chain cost or the value to the
customer vary significantly along some attribute if is often effective to have a
pricing menu.
 Every day Low pricing vs high low pricing: The high low pricing strategy result in
a peak during the discount week.often followed by step drop in a demand during the
following weeks.Every day Low pricing is keeping price steady over time.